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Defense Infrastructure: Improved Guidance Needed for Estimating Alternatively Financed Project Liabilities
James R. McTigue, Jr. (au)
To effectively manage facilities, the Dept. of Defense (DOD) has pursued a strategy including base realignment and closure, privatizing certain base assets, and leasing underused property. To do so, DOD leverages private capital using alternative financing agreements that rely at least in part on means other than full up-front appropriations. This report assessed the impact of base closures on such agreements and how DOD captures costs associated with projects in the Base Realignment and Closure (BRAC) process. The report (1) describes existing projects on DODäó»s U.S. bases, as of September 30, 2011; how project legal agreements protect the governmentäó»s financial interests; and circumstances where DOD could face financial liabilities in the event of base closure; and (2) determines the extent to which DODäó»s process for estimating costs and savings of base closure candidates captures these liabilities and other costs. Tables and figures. This is a print on demand report.
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